Solution-Calculate the yield of the security

Calculate the yield of the security

Reference no: EM133076153

A Brazilian company issued a 2-year eurobond, paying a semiannual coupon with a spread of 6% p.a. on Libor (Libor + 6% per year). This title was purchased for the price of US$975.00. Calculate the yield of the security per year (in percentage per year), knowing that the half-yearly Libor on the issue date was quoted at 4.0% and that, at the beginning of the subsequent semesters, the quotations observed were 4.5%, 5, 0% and 4.75%. The face value of this bond is US$1,000.00.

Reference no: EM133076153

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Calculate the yield of the security

Reference no: EM133076153

Reference no: EM133076153

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